No matter how good or bad are your driving skills, your insurance rates usually bases on statistics. Everything is taken into consideration: gender, age, marital status, your address and vehicle but not the skills. You can drive like a god, but if you are a young lady on ladyish car, prepare to pay the fortune for the insurance. Still, accident-free history of driving may give you a discount, though, you can save a lot more with help of personalization of your premiums.
Recent studies have shown that it is possible to reduce annual premiums by 28% if to follow the pay-as-you-drive policy.
The main stumbling block of user-based insurance was a monitoring of the mileage and until recently there were no ways to monitor it. Today with the development of the technologies it is possible to approve the way of your driving.
For example, Snapshot, a user-based insurance works in the 37 states in the following way: you receive a palm-size tool to analyze the condition on the car and it constantly receives data concerning the acceleration and braking rates, time of usage and mileage. The first discount you may receive within a month. After half of a year you have to send the tool back and receive a permanent discount up to 30%. The average discount is about 10 to 15%, however, careful drivers have all chances to get 30%.
Insurance company Allstate has another program of that kind called Drive Wisely. Here the tool also collects the information how many times did you accelerate higher than 80 miles per hour. You will receive 10% discount right after the signing up and in 6 months it will be replaces with the new one up to 30%. Drive Wisely’s main condition: you have to keep the analysis tool in your car all the time, so the discount may change according to the policy renewals.
Low mileage drivers can take an advantage of General Motors’ OnStar system – it is free for the first year for the new GM vehicles.
In Texas, for instance, you can buy insurance by the mileage (2.5 cents per mile). The only thing you have to do is to send photo of odometer at sign-up procedure and at renewal time.